Universal Display (OLED)
NASDAQ:OLED
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Universal Display
(NASDAQ:OLED)
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Rating:70Outperform
Price Target:
$100.00
▲(0.45% Upside)
Action:ReiteratedDate:02/21/26
The score is driven primarily by strong financial performance (high profitability and a fortress balance sheet) and a generally positive but cautious earnings outlook. These are partly offset by weak technicals (price below key moving averages) and only moderate valuation support.
Positive Factors
High Profitability
Sustained very high gross and net margins indicate durable pricing power from proprietary materials and licensing. High margins support strong free cash generation and reinvestment capacity, helping fund R&D, dividends and buybacks over the next several years.
Negative Factors
Revenue Lumpiness
Catch-up adjustments and re-estimations tied to third‑party forecasts create durable volatility in quarterly revenue recognition. This undermines visibility for investors and customers, complicates cash forecasting, and can mask underlying demand trends for multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained very high gross and net margins indicate durable pricing power from proprietary materials and licensing. High margins support strong free cash generation and reinvestment capacity, helping fund R&D, dividends and buybacks over the next several years.
Read all positive factors
Universal Display (OLED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.66B
Dividend Yield1.52%
Average Volume (3M)672.57K
Price to Earnings (P/E)22.9
Beta (1Y)1.58
Revenue Growth0.45%
EPS Growth9.14%
CountryUS
Employees468
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1.39
Shares Outstanding47,098,286
10 Day Avg. Volume587,494
30 Day Avg. Volume672,572
Financial Highlights & Ratios
PEG Ratio2.49
Price to Book (P/B)3.15
Price to Sales (P/S)8.53
P/FCF Ratio35.97
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue7.02
Enterprise Value/Gross Profit9.38
Enterprise Value/Ebitda14.48
Forecast
1Y Price Target
$141.25Price Target Upside41.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)4.78
Revenue Forecast (FY)$673.83M
Universal Display Business Overview & Revenue Model
Company Description
Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. It owns, exclusively licenses, or...
How the Company Makes Money
Universal Display primarily makes money through two major revenue streams: (1) licensing and royalty revenue tied to its OLED intellectual property, and (2) sales of OLED materials. Licensing/royalties: The company licenses its OLED and PHOLED pat...
Universal Display Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights revenue from different business segments, providing insight into which areas are driving growth and how the company is diversifying its income streams.
Highlights revenue from different business segments, providing insight into which areas are driving growth and how the company is diversifying its income streams.
Data provided by:
The Fly
The FlyUniversal Display Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presents a largely positive operational and financial performance picture: record 2025 revenue, strong profitability, solid cash and capital returns, continued R&D investment and favorable long-term market dynamics (new fabs, expanding end markets). Offsetting these positives are near-term headwinds including higher raw material costs (pressuring gross margins), lumpiness from catch-up revenue adjustments, modest and uncertain near-term commercialization of phosphorescent blue (limited developmental revenue), increasing competition in China, and conservative 2026 growth/margin guidance reflecting these risks. Overall, the company appears well positioned for long-term growth but acknowledges several near-term margin and execution challenges.Positive Updates
Record 2025 Revenue and Profitability
Revenue of $651.0M in 2025 (record annual revenue). Operating income $249M (38% operating margin) and net income $242M ($5.08 diluted EPS), up from $222M and $4.65 EPS in 2024 (≈+9% net income / ≈+9.25% EPS).
Negative Updates
Gross Margin Pressure from Raw Material Costs
Total gross margin for 2025 was 76% vs 77% in 2024 (down ~1 percentage point). 2026 gross margin guide lowered to 74%–76%, citing higher raw material costs (notably iridium) and more complex materials requiring different quantities/types of inputs.
Read all updates
Q4-2025 Updates
Positive
Negative
Record 2025 Revenue and Profitability
Revenue of $651.0M in 2025 (record annual revenue). Operating income $249M (38% operating margin) and net income $242M ($5.08 diluted EPS), up from $222M and $4.65 EPS in 2024 (≈+9% net income / ≈+9.25% EPS).
Read all positive updates
Company Guidance
Universal Display guided 2026 revenue of $650 million to $700 million (midpoint roughly mid-single‑digit/≈4% growth), with a materials-to-royalty/license mix of about 1.3:1; total gross margins of ~74%–76% (impacted by higher raw‑material costs such as iridium); R&D and SG&A expected to grow mid‑ to high‑single‑digit % year‑over‑year; operating margins targeted at 34%–37%; an effective tax rate of ~19%; seasonality skewed to the back half of the year and new Gen 8.6 capacity (Samsung in Q2, BOE shortly after) is factored into the outlook, the company ended 2025 with $955 million cash and continues capital returns (≈454,000 shares repurchased for $53 million in Q4/Q1 and total shareholder returns of ≈$139 million over the last 12 months, plus a raised quarterly dividend of $0.50/share payable March 31, 2026).Universal Display Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
80
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 650.61M | 647.68M | 576.43M | 616.62M | 553.52M |
| Gross Profit | 477.78M | 499.22M | 441.05M | 488.72M | 438.53M |
| EBITDA | 341.38M | 282.94M | 260.59M | 309.38M | 269.61M |
| Net Income | 242.07M | 222.08M | 203.01M | 210.06M | 184.21M |
Balance Sheet | |||||
| Total Assets | 1.97B | 1.83B | 1.67B | 1.53B | 1.47B |
| Cash, Cash Equivalents and Short-Term Investments | 602.36M | 492.67M | 514.12M | 577.77M | 663.19M |
| Total Debt | 43.19M | 19.14M | 22.86M | 29.04M | 27.26M |
| Total Liabilities | 211.84M | 215.81M | 221.74M | 257.45M | 367.00M |
| Stockholders Equity | 1.76B | 1.62B | 1.45B | 1.28B | 1.10B |
Cash Flow | |||||
| Free Cash Flow | 154.36M | 211.10M | 28.42M | 79.61M | 147.55M |
| Operating Cash Flow | 210.83M | 253.74M | 154.78M | 126.81M | 191.10M |
| Investing Cash Flow | -45.48M | -164.41M | -83.29M | -280.74M | -457.75M |
| Financing Cash Flow | -125.98M | -82.33M | -72.93M | -64.64M | -51.37M |
Universal Display Technical Analysis
Negative
99.55
Price Trends
102.15
Negative
110.39
Negative
125.63
Negative
Market Momentum
-0.39
Negative
55.38
Neutral
83.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLED, the sentiment is Negative. The current price of 99.55 is above the 20-day moving average (MA) of 94.43, below the 50-day MA of 102.15, and below the 200-day MA of 125.63, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 55.38 is Neutral, neither overbought nor oversold. The STOCH value of 83.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OLED.
Universal Display Risk Analysis
Universal Display disclosed 30 risk factors in its most recent earnings report. Universal Display reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Universal Display Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $16.81B | 3,496.18 | 0.44% | ― | 2.72% | -95.00% | |
70 Outperform | $4.66B | 22.94 | 14.07% | 1.52% | 0.45% | 9.14% | |
69 Neutral | $17.13B | 42.96 | 18.29% | ― | 27.13% | 27.87% | |
66 Neutral | $10.21B | -177.61 | -7.22% | ― | 15.48% | 82.89% | |
66 Neutral | $8.18B | 149.88 | -1.40% | ― | 8.67% | 79.04% | |
63 Neutral | $4.08B | 90.19 | 3.17% | 2.27% | 5.86% | -30.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
OLED
Universal Display
99.03
-25.58
-20.53%
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122.80
73.84
150.82%
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266.82%
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44.13
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129.49%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.